Structure of Iran’s Foreign Trade ex-ante and ex-post Economic Sanctions: Role of Intensive and Extensive MarginsWP (2015)
This study decomposes the structure of Iran’s trade, ex-ante and ex-post economic sanctions. It employs two distinct methods of trade growth decomposition, intensive and extensive margins, as proposed in the literature. The major findings on Iran’s foreign exports spanning the period 2000-2012 are as follows. First, the intensive margin of trade played a dominant role for export growth in both the pre- and post- sanction intervals. Second, for the entire period, Iran has constantly attempted to deepen its existing trade relationships. However, the sanctions, on average, magnified failed relationships. Third, efforts to deepen current trade relationships resulted in the substitution of quantity for quality exports, ex-post sanctions. Fourth, since 2007, Iran successfully created new trading relationships to divert its export markets. Nevertheless, aggregate losses from the failed relationships exceeded the gains from new trade linkages. Fifth, Iran’s foreign trade policies towards different geographical regions varied both pre- and post- economic sanctions.
Publication DateSummer 2015
Citation InformationResearch in International Trade. "Structure of Iran’s Foreign Trade ex-ante and ex-post Economic Sanctions: Role of Intensive and Extensive Margins" WP (2015)
Available at: http://works.bepress.com/researchin-internationaltrade/11/